HARARE - Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono is today expected to announce his half-year monetary policy statement expected to outline how the central bank intends to curb run-away inflation and the shortage of cash in the country.

The monetary policy statement, which analysts said was overdue, comes after the central bank chief hinted of a post-election “blueprint” that would turnaround the southern African country’s economy that has been on a free-fall since 2000.

Impeccable sources at the central bank said Gono would announce a reprieve to the cash shortages that resulted from low daily maximum withdrawals.

“The main focus of this policy statement will be on cash limits,” said one source. “The issue of accommodation (secured and unsecured rates) has been already addressed, but cash limits continue to be a problem against this background of soaring inflation.”

Earlier this month the RBZ reviewed capital requirements of financial institutions, which are due to be complied with by September.

Gono, sources said, would also introduce a $500 billion denomination of bearer cheques, barely a week after introducing a $100 billion note. 

The RBZ introduced new 10 million, 50 million 100 million and 250 million dollar notes during the first quarter of this year.

However, the new notes are now worthless after annual inflation soared to 2.2 million percent as Zimbabwe reels under an economic crisis that President Robert Mugabe blames on sanctions imposed by Western countries in a bid to end his iron grip on power.

Critics blame the economic meltdown on repression and wrong polices by Mugabe, who has ruled Zimbabwe since its 1980 independence from Britain.

Speaking at the opening of the Midlands agricultural show last Saturday, Gono promised that he would address the monetary challenges affecting the public.

“I am, therefore, very confident that this coming week will bring about the much needed relief in our national payment system,” Gono said.

Meanwhile, analysts have warned that today’s policy statement will be bereft of “sound economic solutions” owing to the central bank’s quasi-fiscal engagements and continued money supply growth, which they said, was inflationary.

Gono was not immediately available for comment on the matter. – ZimOnline.